First Regular Session Seventieth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 15-0373.01 Kristen Forrestal x4217SENATE BILL 15-107 SENATE SPONSORSHIP Heath, HOUSE SPONSORSHIP (None), Senate Committees House Committees Business, Labor, & Technology A BILL FOR AN ACT Concerning the classification of independent contractors by the department of labor and employment. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Pursuant to the "Colorado Employment Security Act", service performed by an individual for another is deemed to be employment irrespective of whether the common-law relationship of master and servant exists, unless it is shown to the satisfaction of the division of labor in the department of labor and employment (division) that the individual is free from control and direction in the performance of the service. The bill removes the requirement that freedom from control and direction must be shown "to the satisfaction of the division". Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 8-70-115, amend (1) (b) as follows: 8-70-115. Employment - "Federal Unemployment Tax Act". (1) (b) Notwithstanding any other provision of this subsection (1) and notwithstanding the provisions of section 8-80-101, service performed by an individual for another shall be is deemed to be employment, irrespective of whether the common-law relationship of master and servant exists, unless and until it is shown to the satisfaction of the division that such that the individual is free from control and direction in the performance of the service, both under his or her contract for the performance of service and in fact; and such the individual is customarily engaged in an independent trade, occupation, profession, or business related to the service performed. For purposes of this section, the degree of control exercised by the person for whom the service is performed over the performance of the service or over the individual performing the service, if exercised pursuant to the requirements of any state or federal statute or regulation, shall not be considered. SECTION 2. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 5, 2015, if adjournment sine die is on May 6, 2015); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2016 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.